Certified Government Financial Manager (CGFM) Practice Exam 2026 - Free CGFM Practice Questions and Study Guide

A significant goal of the Federal Accounting Standards Advisory Board (FASAB) is to provide guidance on budgetary reporting. FASAB was established to develop and issue accounting standards for federal agencies in the United States, with a focus on ensuring that financial reporting is transparent, reliable, and useful for decision-making.

By providing clear standards and guidance on budgetary reporting, FASAB aims to enhance the accountability and transparency of government financial operations. This is crucial because effective budgetary reporting allows stakeholders, including Congress, the public, and management, to understand the government's financial condition and ensure that resources are managed responsibly.

The other options, while relevant in different contexts, do not align with FASAB's primary mission. The enhancement of private sector accounting standards is primarily the role of organizations like the Financial Accounting Standards Board (FASB). Compliance with international regulations would involve entities like the International Accounting Standards Board (IASB), which focuses on global accounting standards. Improving local government financial accountability is generally the responsibility of state or local government accounting boards rather than FASAB, which is focused specifically on federal level standards.